Hellenic’s “two major shareholders Third Point Hellenic Recovery Fund, L.P. and Wargaming Public Company Ltd are supportive of the issue and have each undertaken in a letter agreement to subscribe in full for the shares corresponding to their rights at the exercise price,” the bank said in a statement on its website.

The lender aims at a capital increase with a €220 million rights issue, at a price of €0.0375 per share, the statement said. As each Third Point and Wargaming possess 20.32% of total shares, the lender is now concentrated in securing around €130 million in remaining capital.

Any amount in excess of the €105 million capital shortfall that Hellenic will attract via the rights issue “will be used to further develop the bank,” a person with knowledge of the situation said on condition of anonymity. He added that Hellenic may consider buying loan packages from other banks and other assets in an attempt to expand its market share on the local market.

The capital increase must be concluded by December 31, 2014.

Source: Cyprus Mail